Narendra Modi-led Govt in Delhi says Russia and India have a time-tested partnership
Friend or foe, America can be a very vengeful country.
"Our relation with the US is important, but it's also important for us to hold on to our red lines," - Meera Shankar, former Indian ambassador to US,
India-Russia trade business continued ever since Russia-UKraine war. India was close to the US too. Vladimir Putin did not make any fuss about enhanced New Dehi-Washington ties.
"We are happy for India to keep buying oil" - US Treasury Secretary Janet Yellen, November 2022 under Biden.
But now Trump has challenged this position.
The overall Indo-US ties are now at stakes and would depend a lot on how New Delhi reacts will decide the future course.
Now it may not be erroneous to suggest that the 'Cold War-era' baggage has come to haunt yet again.
It is therefore argued that the Modi Govt also has compulsions of dealing with pressures of domestic politics.
In other words; giving in to Washington's demands is not an option for India.
The refrain from analysts is that India will need to assuage 'public anger' in the country and make clear it will not surrender to the pressure.
In more ways than one, Trump's insistence that India stop importing oil from Moscow has more to do with the US President growing frustration over Russian President Vladimir Putin.
India doesn't buy refined Russian fuel. But others do. Turkey, a NATO member, bought 26% of Russia's refined oil exports. China and Brazil also rank high on the list. So again, the narrative that India is the enabler begins to collapse under the weight of data.
India is not violating global rules. India buys oil through international traders, not directly from Russian state entities. It abides by the G7 price cap, uses compliant shipping, and insures its cargo through approved channels.
Every transaction is legal.
India gave several concessions to US
New Delhi has given a number of "concessions" to Washington, including no tariffs on industrial goods, and a phased reduction of tariffs on cars and alcohol.
It also signed a deal to let Elon Musk's Starlink start operations in India. But the US is not impressed. Its focus is on reducing the $45bn trade deficit with India.
Hence it wants access to India's agriculture and dairy sectors.
Even US officials have acknowledged in the past that:
"We are happy for India to keep buying oil - US Treasury Secretary (November 2022)
"India helped stabilise global markets" - Biden's Energy Adviser (2024)
"India delivered. Prices didn't spike" - US Ambassador Eric Garcetti (May 2024)
India still wants to clinch a workable trade deal with the US. The issue is it does not wan to sign o dotted lines.
Delhi can't afford to stop importing oil from Russia overnight.
India is already the world's third biggest consumer of crude and may surpass China in the top position by 2030 as its energy demand is likely to increase with a fast-growing middle class, according to International Energy Agency (IEA).
India also sees Russia as its "all-weather" ally. Moscow has traditionally come to Delhi's rescue during past crises and still enjoys support among the wider Indian public.
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